Significant Investor and Premium Investor Programme Changes Announced

The Government has provided details today of the new complying investment framework for the Significant Investor Visa (SIV) and Premium Investor Visa (PIV) programme which it hopes to implement from 1 July 2015.

The aim of the new requirements is to encourage investment into innovative Australian ideas and emerging companies. Austrade will also become a nominator for the SIV, alongside State and Territory Governments, and interestingly, the sole nominator for the PIV.

Under the new framework, SIV applicants will be required to invest at least $5 million over four years in complying investments, which must now include:

• At least $500,000 in eligible Australian venture capital or growth private equity fund(s) investing in start-up and small private companies. The Government expects to increase this to $1 million for new applications within two years as the market responds;
• At least $1.5 million in an eligible managed fund(s) or Listed Investment Companies (LICs) that invest in emerging companies listed on the Australian Securities Exchange (ASX); an  
• A ‘balancing investment’ of up to $3 million in managed fund(s) or LICs that invest in a combination of eligible assets that include other ASX listed companies, eligible corporate bonds or notes, annuities and real property (subject to the 10% limit on residential real estate).
  

Previously, investment through the SIV programme was largely going into passive investments like government bonds and residential real estate funds. These areas traditionally attract large capital flows and as a result the Government has been looking to divert funds into areas which have more potential for added positive impact to our economy.

Direct investment in real estate has never been a complying investment for SIV and this will not change under the new arrangements. Indirect investment in residential real estate through managed funds will also now be limited.

The new PIV is intended to commence from 1 July 2015, targeting talented entrepreneurs and innovators. The PIV will offer an accelerated 12 month pathway to permanent residency, for those meeting a $15 million threshold. The PIV will be available at the invitation of the Australian Government only, with potential recipients to be nominated by Austrade.

For further information in relation to these initiatives please contact the Immigration team at Nevett Ford Lawyers.